Tag Archives: Reasons startups fails

The dearth of product-market fit to miscommunication and thinking-gap among the various team members, the experts of a Best Website Designing Company Delhi India think that there are many reasons why startups witness their destiny dooming with every new day. The experts of a meticulous and result-oriented Website Development Company in Delhi have put together 5 major reasons why startups face failure. But, before we get down to the actual business let’s see how many other lucky startups have been bestowed with the same fate in the past.

According to an article in FastCompany, 75% of venture-backed startups fail.

According to sources, more than 90% (Ninety percent) of all Internet business start-ups end in failure within the first 120 (one hundred twenty) days.

The SBA states that 30% of new businesses fail during the first 2 years of being open, 50% during the first 5 years and 66% during the first 10 years.

These shocking failure figures go unnoticed due to numerous reasons.

Foibles of Cofounders: It is true that most of the startup founders preceded their careers as salaried employees and then they are funded to start their own dream business. When you are running a startup, it is quintessential to devote your 24X7 dedication, commitment and razor focused approach and you simply can’t lack in this department. Your primary priority in life should only be to grow your business and take it to new heights; everything else should be a backdrop. A large proportion of founders despite their yearning to succeed, fail to transform themselves into a true entrepreneur.

Lack of Business Background: Did you ever manage a team in the past? Are you aware of the ins and outs of accounting? Do you how a business should be functioned and operated? Are you aware of the market that you are going to target? If the answer to these questions is going to be no, then the chances are that you are definitely going to fail, no matter what. An entrepreneur needs to be thorough with the business he is dealing in.

Lack of Product-Market Fit: This is one of the most prominent reasons why most of the startups fail to stand straight in the market. Sometimes startups introduce a product in the market that does not fulfill the needs and demands of the market. Some companies may introduce a product that after some modifications and revisions can come close to meeting the demands of the market. On the other hand, there are startups that launch a product that is completely off-base and so their chances of survival are negligible.

Lack of Funds: Proper allocation of resources is the most important part if want your funds to stay for a longer time period. You need to be 100% sure as to this is where you need to invest this much money in. This will be the outcome if you are spending this much money on a particular task and this much additional funds will go into it if the task comes out successful. Google and Facebook can afford taking risks on small experiments they periodically carry out, but not you. For you every dime is precious.

Weak Management Team: Another prominent factor that often leads startups to their earlier grave is the poor management team. Yes, because a good management team would be the one that will avoid reasons 3 and 4. They often end up making glitches in the following areas,

They build weak strategies for the product marketing,

Build product that have no demand in the market,

Poor product builds, due to lack of proper executions and deadline achievements.

There are many other reasons why startups fail in the first place, the list of which is given below.